Which of the following is included in an explicit written contract for cost allocation?
A) resource allocation for the budgeted costs
B) the rate at which the company should be taxed upon
C) permissible cost-allocation bases
D) profit that the company must earn

Question

Quizplus · Accepted Answer

Permissible cost-allocation bases, such as direct labor hours or machine hours, are typically specified in an explicit written contract for cost allocation. Resource allocation for budgeted costs and profit targets may be included in the contract as well, but the rate of taxation is usually determined by external laws and regulations rather than contractual agreements.

Which of the Following Is Included in an Explicit Written